LG Display has successfully returned to profitability in the first half of the year through a focus on OLED-centered business restructuring and cost innovation. Although the company reported a loss in the second quarter due to one-time expenses, it has broken the trend of losses seen in the first half of last year, laying the groundwork for improved annual performance.
According to LG Display on July 22, the company recorded consolidated sales of 11.1461 trillion won and an operating profit of 39 billion won in the first half of this year. In the same period last year, sales were 11.6523 trillion won, with an operating loss of 826 billion won.
The operating profit improved by 1.216 trillion won year-on-year. While sales slightly decreased, the company turned a profit, reflecting the benefits of moving away from a low-margin LCD-centric structure to a higher proportion of OLED and value-added products.
In the second quarter alone, sales were 5.6121 trillion won, with an operating loss of 1.077 trillion won. The quarterly loss occurred despite the overall first-half profit due to seasonal downturns and one-time costs associated with workforce efficiency improvements.
Typically, the display industry experiences weaker demand in the first half of the year as finished product manufacturers adjust component inventories ahead of new product launches in the second half. This year, the second quarter's profitability was temporarily affected by the inclusion of one-time costs.
Industry analysts believe that the launch of new mobile products and demand for OLED monitors in the second half will be critical factors in determining whether LG Display can maintain annual profitability.
LG Display plans to strengthen its OLED-centered business structure in the second half. The small and medium-sized business segment will focus on high-end products, utilizing a stable technology, development, and mass production system to respond to changes in customer demand.
In the large business segment, the company aims to enhance profitability by focusing on premium products, particularly targeting the rapidly transitioning monitor market from LCD to OLED. LG Display intends to expand its lineup of high-value products, such as gaming OLED monitors, to increase shipments.
Cost innovation remains a key challenge. LG Display emphasizes production efficiency through AI transformation (AX) rather than simple cost-cutting measures. The strategy aims to improve process efficiency throughout the entire development, manufacturing, and production cycle.
Kim Sung-hyun, Chief Financial Officer of LG Display, stated, "Excluding one-time factors in the second quarter, the core profitability of the business remained in the black. We will solidify a stable profit structure through advanced cost innovation and enhanced business competitiveness in the second half."
* This article has been translated by AI.
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